Introduction
Cyprus trust law continues to evolve in 2026 through a combination of proposed legislative reforms, regulatory developments and tax changes aimed at strengthening the jurisdiction’s attractiveness for international wealth planning, asset protection, succession planning and cross-border investment. The latest developments enhance legal certainty, improve governance standards and align the Cyprus trust framework with evolving EU and international best practices.
A More Modern and Transparent Trust Regime
The most significant proposed reform is the transition from the traditional Cyprus International Trust (CIT) concept to a unified framework for Cyprus express trusts. Rather than introducing a new type of trust, the proposal modernises the legal terminology and establishes a more consistent framework for all express trusts, including discretionary, fixed-interest, family, commercial and holding trusts. The reforms also provide greater clarity on trustee duties, trust administration, governing law and jurisdiction, creating a more transparent and predictable legal environment.
Alongside these legislative proposals, trustees continue to face enhanced compliance obligations. Greater emphasis is placed on maintaining accurate beneficial ownership information, conducting robust customer due diligence, documenting trustee decisions, managing conflicts of interest and maintaining governance records, while preserving the confidentiality that has long made Cyprus trusts an attractive planning tool.
The 2026 corporate income tax increase from 12.5% to 15% also makes it timely to review trust structures holding Cyprus companies. In addition, the abolition of Cyprus stamp duty from 1 January 2026 reduces establishment costs and simplifies the execution of trust deeds.
Excellent Opportunity
The 2026 reforms provide an excellent opportunity for individuals, families and businesses to review existing trust structures and ensure they remain compliant, tax-efficient and aligned with their long-term succession and investment objectives.
Eurofast’s Take
Eurofast’s experienced legal, tax and corporate services professionals with proven Know How, assist clients with establishing, restructuring and administering Cyprus trust structures, ensuring full regulatory compliance while developing tailored solutions that protect wealth and support international business and family planning strategies.
For any further information, or personalized advice, please contact us at [email protected]